<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE JUNE 30,
1998 10-Q OF HILLS BANCORPORATION AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               JUN-30-1998
<CASH>                                          18,591
<INT-BEARING-DEPOSITS>                               0
<FED-FUNDS-SOLD>                                17,131
<TRADING-ASSETS>                                     0
<INVESTMENTS-HELD-FOR-SALE>                    110,322
<INVESTMENTS-CARRYING>                          26,538
<INVESTMENTS-MARKET>                            26,886
<LOANS>                                        446,238
<ALLOWANCE>                                      8,109
<TOTAL-ASSETS>                                 637,098
<DEPOSITS>                                     490,762
<SHORT-TERM>                                    17,339
<LIABILITIES-OTHER>                              4,199
<LONG-TERM>                                     63,764
<PREFERRED-MANDATORY>                            8,482
<PREFERRED>                                          0
<COMMON>                                         9,070
<OTHER-SE>                                      43,482
<TOTAL-LIABILITIES-AND-EQUITY>                 637,098
<INTEREST-LOAN>                                 18,542
<INTEREST-INVEST>                                4,031
<INTEREST-OTHER>                                   543
<INTEREST-TOTAL>                                23,116
<INTEREST-DEPOSIT>                              10,068
<INTEREST-EXPENSE>                              12,408
<INTEREST-INCOME-NET>                           10,708
<LOAN-LOSSES>                                      408
<SECURITIES-GAINS>                                   0
<EXPENSE-OTHER>                                  8,063
<INCOME-PRETAX>                                  5,058
<INCOME-PRE-EXTRAORDINARY>                       3,577
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     3,577
<EPS-PRIMARY>                                     2.44
<EPS-DILUTED>                                     2.40
<YIELD-ACTUAL>                                       0
<LOANS-NON>                                          0
<LOANS-PAST>                                     1,065
<LOANS-TROUBLED>                                     0
<LOANS-PROBLEM>                                  7,309
<ALLOWANCE-OPEN>                                 8,010
<CHARGE-OFFS>                                      309
<RECOVERIES>                                         0
<ALLOWANCE-CLOSE>                                8,109
<ALLOWANCE-DOMESTIC>                             8,109
<ALLOWANCE-FOREIGN>                                  0
<ALLOWANCE-UNALLOCATED>                              0